WSJ summary 8

WSJ summary 8 - He uses the P/S strategy rather than the...

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         Due Date: 12/03/07 Name: FNCE 4030 FNCE 4030 Weekly Wall Street Journal Assignment Submission Form Article Title: The Magic Metric Publication Date: Forbes 12/10/07 1. Have high P/S stocks or low P/s stocks performed better historically? High P/S stocks have beat the market by an annualized 16-13% over the half century. 2. Why does O’Shaughnessy like P/S better than P/E as a measure?
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Unformatted text preview: He uses the P/S strategy rather than the P/E measure because earnings figure is more easily manipulated than the sales one. The second is that other companies on the rebound may have earnings that are temporarily depressed, distorting the P/E multiple. 3. At what maximum P/S level will he purchase a stock? 1.5...
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This note was uploaded on 02/27/2008 for the course FNCE 4030 taught by Professor Madigan,ge during the Fall '07 term at Colorado.

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